Against the back drop of the future site of the United States EnviroFuels Ethanol Production Facility at the Port of Tampa, Governor Jeb Bush signed into law today the "2006 Florida Renewable Energy Technologies & Energy Efficiency Act."

The Florida Department of Environmental Protection (DEP) Secretary Colleen Castille welcomed the governor and other dignitaries to the signing of this momentous legislation.

Hailed as a great first step toward reducing the state’s reliance on fossil fuels, Governor Bush praised legislators for producing a good piece of legislation. The governor stated that this comprehensive Energy Bill includes incentives for Floridians to help offset the rising cost of energy. In part, the bill creates the Florida Energy Incentives Program, which Governor Bush says the Sunshine State will lead the nation in solar energy. The Florida Energy Incentives Program was championed by Senator Paula Dockery (R - Lakeland) and Representative Dorothy Hukill (R - Daytona Beach Shores).

Governor Bush commented that he fully expects this incentive program to be a success and urged the Legislature to continue adequate funding of the program in the future.

One of the main architects of the Energy Bill, Senator Lee Constantine (R - Altamonte Springs), cited the Legislature’s vision in placing Florida at the forefront of energy policy as it sets out to "change the charts" in energy usage. Constantine concluded his remarks by saying that he felt this legislation puts Florida ahead of all states in the development of a comprehensive Energy Policy.

Adam Hasner (R - Delray Beach), who ushered the Energy Bill through the Florida House, pledged to continue to work on energy issues in the future.

Effective July 1, 2006, and extending through June 30, 2010, Florida consumers and businesses installing solar equipment, including solar photovoltaic (electricity), solar thermal (water heater) and solar thermal pool heaters, will be eligible for the state’s solar rebates program, currently budgeted for $2.5 million in the first year. Highlights of the Florida Energy Incentives Program are illustrated below:

The following are highlights of the bill:

• Creates the Florida Energy Commission.
• Members cut from 13 (Senate version) to nine.
• No governor appointments.
• No transfer of the Energy Office.
• Commission will not develop policy.
• Commission will be arm of Legislature.
• Commission will review the state energy policy and make recommendations to the Legislature on any changes or improvements needed.
• NOTE: The bill does not contain any appropriation for the Florida Energy Commission for staff, travel and other expenses.

Chapter 2006-230, Laws of Florida, also creates the Florida Energy Incentives Program.

• Purpose
  • The Solar Energy System Incentives Program is established within the Department of Environmental Protection (DEP) to provide financial incentives for the purchase and installation of solar energy systems. Any resident of the state who purchases and installs a new solar energy system of 2 kilowatts or larger for a solar photovoltaic system, a solar energy system that provides at least 50 percent of a building’s hot water consumption for a solar thermal system or a solar thermal pool heater, from July 1, 2006 through June 30, 2010, is eligible for a rebate on a portion of the purchase price of that solar energy system.
    
• Solar Photovoltaic Incentive Program
  • rebate set at $4 per watt based on total wattage rating of the system up to a maximum rebate for a residence of $20,000
  • maximum rebate for commercial of $100,000
  • must be installed by a licensed master electrician or state licensed electrical or solar contractor.
    
• Solar Thermal Incentive Program
  • maximum rebate for a residence of $500
  • rebate set at $15 per 1,000 BTU or up to a maximum rebate for commercial of $5,000
  • must be installed by a state licensed solar or plumbing contractor
    
• Solar Thermal Pool Heater Incentives
  • $100 per installation
  • must be installed by a state licensed solar or plumbing contractor
    
• Application
  • Applications for rebate must be made within 90 days after purchase of the solar energy equipment.
    
• Rebate Availability
  • Provides $2.5 million in non-recurring funds for 2006-2007 fiscal year
  • DEP will determine and publish on a regular basis the amount of rebate funds remaining.
  • If funds are insufficient during the current fiscal year, requests for rebates received during that fiscal year may be processed during the following fiscal year.
  • Requests for rebates received in a fiscal year that are processed during the following fiscal year shall be given priority over requests for rebates received during the following fiscal year.

Other Issues

• There is also $10 million available in The Renewable Energy Technologies Grants Program. This program provides renewable energy matching grants for demonstration, commercialization, research and development projects relating to renewable energy technologies. These grants could be used on various projects but should be innovative.

What Remains?

• DEP has rule making authority to develop related applications and administer the issuance of rebates.
• DEP has unofficially started the rule development process.
• Formal notice of the rule development process will be made immediately after the governor has taken final action.
• DEP has committed staff and resources to be ready for the July 1, 2006 effective date.
• DEP encourages FlaSEIA to be involved in the rule development process.
• FlaSEIA will have to be prepared to work with both the Florida Energy Office and the new Florida Energy Commission throughout the coming year. Both entities will be reviewing the state energy policy and making recommendations to the Legislature on any changes or improvements needed.

Click here to review a copy of Chapter Law 2006-230.